System and method for bait generation

Abstract

The present invention relates to a system and method for generating and managing bait orders in high performance computer systems, in particular it relates to a computer system and method for bait generation in high performance trading systems. The present invention removes bait orders when the base order has changed in such a way so that the bait order is not tradable. Thereafter the invention regenerates the bait order at a later time.

1 . A computer system for managing bait orders, the computer system comprising:
 an interface for receiving a combination order and a base order,   a generator module for generating at least one bait order based on the combination order and base order, and for placing the at least one bait order in an order book,   a management module for managing the generated bait order,   
     wherein the management module removes the bait order from the order book when the bait is not tradable due to a change in the base order. 
   
   
       2 . A computer system according to  claim 1 , wherein the combination order comprises at least two legs and a net price. 
   
   
       3 . A computer system according to  claim 1 , wherein the base order comprises a price for an instrument traded in an order book. 
   
   
       4 . A computer system according to  claim 1 , wherein the generator module re-generates a new bait order after a time interval have passed from the removal of the bait order from the order book, and places the new bait order in the order book. 
   
   
       5 . A computer system for managing bait orders, the computer system comprising:
 an interface for receiving a combination order and a base order,   a generator module for generating at least one bait order based on the combination order and the base order, and for placing the at least one bait order in an order book,   a management module for managing the generated bait order,   
     wherein the management module leaves the bait order in the order book until the bait is not tradable due to a change in the base order. 
   
   
       6 . A financial trading system comprising the computer system according to  claim 1 . 
   
   
       7 . A method for managing bait orders, the method comprising the steps of:
 receiving a combination order and a base order,   generating at least one bait order based on the combination order and the base order,   placing the at least one bait order in an order book, and   removing the bait order from the order book when the bait is not tradable due to a change in the base order.   
   
   
       8 . A method for managing bait orders, the method comprising the steps of:
 receiving a combination order and a base order,   generating at least one bait order based on the combination order and the base order,   placing the at least one bait order in an order book, and   leaving the bait order in the order book until the bait is not tradable due to a change in the base order.   
   
   
       9 . A computer readable memory comprising the method according to  claim 7 .